A career diplomat from Taiwan, Liao began his post as director general in June 2004, following assignments in Jakarta, London and San Francisco. He also was director at the Office of the Foreign Minister, and deputy director general of East Asian and Pacific Affairs.

Liao shared his thoughts on trade relations in Houston and the Bay Area with reporter Robert Stanton.

Q: What is the current relationship between Taiwan and Texas, and what do you see as the prospects for the future?

A: Taiwan is Texas' fifth-largest trading partner, and Texas' export volume to Taiwan in 2006 was $3.9 billion U.S. dollars.

Taiwan is also a significant source of foreign direct investment. The investments made by Taiwanese businesses in the U.S. have exceeded $5 billion and are mainly focused in the banking, high-tech and chemical industries.

We hope that Taiwan and the United States can start free-trade agreement negotiations as soon as possible now that the negotiations between the U.S. and South Korea have been completed. A similar trade agreement with Taiwan would have many benefits for Texas.

The auto and beef industries would see an immediate 100 percent increase in their exports to Taiwan, while the petrochemical and chemical, metal products and electronics sectors would also see export increases. With a free-trade agreement in place, tariffs would be reduced or eliminated.

Q: How many Taiwanese-Americans are there in Houston and the Bay Area, and what contributions do they make to their communities?

A: It is estimated that more than 50,000 Taiwanese-Americans live in the Houston area, which includes the Bay Area. They are professionals or businessmen in various fields.

While contributing to the aerospace, engineering, (information technology), banking, hotel and academic sectors, they have worked to become a part of the local community by participating in groups such as the Space City Professionals Association.

The Taiwanese-American community has done an excellent job of promoting Houston's economic development and building a cultural bridge between Taiwan and the U.S.

Q: What are some of the cultural and academic exchanges taking place between Taiwan and Texas, and where do you see these exchanges going in the future?

A: There are more than 10 cities and counties in Taiwan that have established sister relations with Texas.

For example, Taipei City and Houston established their sister-city relationship in 1963. This was the first sister-city relationship to be established for both cities.

Taipei City and Houston are very active in promoting all kinds of cultural exchange programs every year. For example, Taiwan sends cultural performance groups to Houston each year to give Houstonians a chance to experience Taiwanese culture.

Also, each city sends a group of official visitors to its sister annually. Currently, we have more than 2,000 Taiwanese students enrolled in Texas' tertiary educational institutions. Exchange programs, such as the one between the University of Houston-Clear Lake's School of Business, and National Sun Yat-Sen University in Kaohsiung, allow Taiwanese and Texas students to experience different
cultures.

We hope that Texas and Taiwan can further promote their close friendship and understanding through these academic exchanges.